[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR880.601]



[Page 55-56]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER VIII--OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL 

 

PART 880_SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW 

CONSTRUCTION--Table of Contents

 

                          Subpart F_Management

 

Sec.  880.601  Responsibilities of owner.





    (a) Marketing. (1) The owner must commence diligent marketing 

activities in accordance with the Agreement not later than 90 days prior 

to the anticipated date of availability for occupancy of the first unit 

of the project.

    (2) Marketing must be done in accordance with the HUD-approved 

Affirmative Fair Housing Marketing Plan and all Fair Housing and Equal 

Opportunity requirements. The purpose of the Plan and requirements is to 

assure that eligible families of similar income in the same housing 

market area have an equal opportunity to apply and be selected for a 

unit in projects assisted under this part regardless of their race, 

color, creed, religion, sex or national origin.

    (3) With respect to non-elderly family units, the owner must 

undertake marketing activities in advance of marketing to other 

prospective tenants in order to provide opportunities to reside in the 

project to non-elderly families who are least likely to apply, as 

determined in the Affirmative Fair Housing Marketing Plan, and to non-

elderly



[[Page 56]]



families expected to reside in the community by reason of current or 

planned employment.

    (4) At the time of Contract execution, the owner must submit a list 

of leased and unleased units, with justification for the unleased units, 

in order to qualify for vacancy payments for the unleased units.

    (b) Management and maintenance. The owner is responsible for all 

management functions, including determining eligibility of applicants, 

selection of tenants, reexamination and verification of family income 

and composition, determination of family rent (total tenant payment, 

tenant rent and utility reimbursement), collection of rent, termination 

of tenancy and eviction, and performance of all repair and maintenance 

functions (including ordinary and extraordinary maintenance), and 

replacement of capital items. (See part 5 of this title.) All functions 

must be performed in accordance with applicable equal opportunity 

requirements.

    (c) Contracting for services. (1) For this part 880 and 24 CFR part 

881 projects, with HUD approval, the owner may contract with a private 

or public entity (except the contract administrator) for performance of 

the services or duties required in paragraphs (a) and (b) of this 

section.

    (2) For 24 CFR part 883 projects, with approval of the Agency, the 

owner may contract with a private or public entity (but not with the 

Agency unless temporarily necessary for the Agency to protect its 

financial interest and to uphold its program responsibilities where no 

alternative management agent is immediately available) for performance 

of the services or duties required in paragraphs (a) and (b) of this 

section.

    (3) However, such an arrangement does not relieve the owner of 

responsibility for these services and duties.

    (d) Submission of financial and operating statements. After 

execution of the Contract, the owner must submit to the contract 

adminstrator:

    (1) Financial information in accordance with 24 CFR part 5, subpart 

H; and

    (2) Other statements as to project operation, financial conditions 

and occupancy as HUD may require pertinent to administration of the 

Contract and monitoring of project operations.

    (e) Use of project funds. (1) Project funds must be used for the 

benefit of the project, to make required deposits to the replacement 

reserve in accordance with Sec.  880.602 and to provide distributions to 

the owner as provided in Sec.  880.205, Sec.  881.205 of this chapter, 

or Sec.  883.306 of this chapter, as appropriate.

    (2) For this part 880 and 24 CFR part 881 projects:

    (i) Any remaining project funds must be deposited with the mortgagee 

or other HUD-approved depository in an interest-bearing residual 

receipts account. Withdrawals from this account will be made only for 

project purposes and with the approval of HUD.

    (ii) Partially-assisted projects are exempt from the provisions of 

this section.

    (iii) In the case of HUD-insured projects, the provisions of this 

paragraph (e) will apply instead of the otherwise applicable mortgage 

insurance provisions.

    (3) For 24 CFR part 883 projects:

    (i) Any remaining project funds must be deposited with the Agency, 

other mortgagee or other Agency-approved depository in an interest-

bearing account. Withdrawals from this account may be made only for 

project purposes and with the approval of the Agency.

    (ii) In the case of HUD-insured projects, the provisions of this 

paragraph will apply instead of the otherwise applicable mortgage 

insurance provisions, except in the case of partially-assisted projects 

which are subject to the applicable mortgage insurance provisions.



(Approved by the Office of Management and Budget under control number 

2502-0204)



[44 FR 59410, Oct 15, 1979, as amended at 45 FR 18924, Mar. 24, 1980; 51 

FR 11224, Apr. 1, 1986; 53 FR 846, Jan. 13, 1988; 53 FR 1145, Jan. 15, 

1988; 53 FR 6601, Mar. 2, 1988; 54 FR 39702, Sept. 27, 1989; 56 FR 7536, 

Feb. 22, 1991; 60 FR 14841, Mar. 20, 1995; 61 FR 13588, Mar. 27, 1996; 

63 FR 46593, Sept. 1, 1998; 65 FR 16722, Mar. 29, 2000]